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Tariff Drawback 101: Which U.S. Tariffs are Drawback Eligible?

Scott Sorenson
Apr 4
2 min read

Updated: Apr 10

With the Trump Administration's focus on import tariffs, businesses are once again feeling the pressure of rising trade costs. As these levies increase, many companies are revisiting duty drawback as a tariff mitigation strategy, especially with the April 4 Customs and Border Protection (CBP) brief confirming that drawback is available for the new across-the-board 10% and reciprocal tariffs of 11% to 50%.

Duty drawback is a refund of tariff-imposed import duties, taxes, and fees paid on imported goods that are subsequently exported or destroyed. — and for businesses looking to protect their bottom line, it can be a valuable tool.

Given the growing complexity of today’s trade environment, we want to share our latest interpretation of which tariffs are currently eligible for drawback — and which ones are not. Here’s what we know so far.

Drawback-Eligible Tariffs

10% Universal Tariff, Effective April 5, 2025
Country-Specific Reciprocal Tariffs, Effective April 9, 2025.
Section 301 “China” Tariffs, Effective 2018
Section 201 Tariffs, Outlined in the Trade Act of 1974
Other ordinary tariffs

Drawback-Ineligible Tariffs

Many of the executive orders linked below contain language like, "No drawback shall be available with respect to the duties imposed pursuant to this order."

25% On Automotive Imports, Effective April 3, 2025
25% On Goods and 10% on Energy Products from Canada, Effective April 2, 2025
25% On Goods from Mexico, Effective April 2, 2025
25% On Aluminum from Most Countries, amended from 10%, Effective March 12, 2025
25% On Steel from Most Countries, Effective March 12, 2025
20% On Goods from China, amended from 10%, Effective February 5, 2025

Note on Low-Value Imports

If your organization takes advantage of any de minimis exemptions, please note that this will end for low-value imports (under $800) from China on May 2, 2025. Where available, we recommend filing drawback to offset those costs.

Ready to discover your tariff drawback potential? Let's have a conversation about your specific situation. Set up a discovery call today.